In 5 years, you will start receiving monthly payments of $1000 from a trust fund that one of your great parents set up for you. The first payment will be made at the very end of year 5 and the payments will last for 34 years. You plan to deposit the money you receive every month into a special account right away that pays 6.60% APR with quarterly compounding. Today the account mentioned above has a balance of $14000. Assuming that interest rate will stay constant, what will be the account balance at the end of the 15th year?

In 5 years, you will start receiving monthly payments of $1000 from a trust fund that one of your great parents set up for you. The first payment will be made at the very end of year 5 and the payments will last for 34 years. You plan to deposit the money you receive every month into a special account right away that pays 6.60% APR with quarterly compounding. Today the account mentioned above has a balance of $14000. Assuming that interest rate will stay constant, what will be the account balance at the end of the 15th year?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 28P

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